Pura Vida Energy in pre-open, raising capital

Pura Vida Energy (ASX: PVD) has a 75 per cent interest in the Mazagan Offshore Area. Mazagan is located off the coast of Morocco in the Atlantic. We have modern, high quality 3D seismic data over the block with independently certified prospective resources of more than three billion barrels of oil.

The Toubkal prospect alone has a potential resource range of 180 million to 1.670 billion barrels of oil, with a mean estimate of 790 million barrels of oil. Toubkal is an analogue of the billion barrel Jubilee field in Ghana – the largest oil discovery made in West Africa in the past decade.

Pura Vida Energy (ASX: PVD) is focused on oil exploration in offshore Morocco, with the company this morning entering a trading halt pending a capital raising announcement.

Earlier in the year, the company was awarded the Nkembe block in offshore Gabon that is estimated to hold 20 million barrels of contingent oil resources within the Loba M1 discovery.

The discovery is a potential appraisal target for early drilling as well as deeper exploration potential in the underlying sub-salt reservoirs.

Separately, the company secured a US$230 million farmout of a 52% interest in the Mazagan permit offshore Morocco to Plains Exploration & Production Company (NYSE: PXP).

This ensures that Pura Vida is fully funded by the North American independent through a deep water drilling campaign, which kicks off in the March quarter 2014 with the Toubkal-1 well targeting 1.5 billion barrels of oil.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Wednesday 1st May 2013.

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